Back to top

Image: Bigstock

Zacks Investment Ideas feature highlights: Caterpillar, Domino's Pizza and Cintas

Read MoreHide Full Article

For Immediate Release

Chicago, IL – September 23, 2024 – Today, Zacks Investment Ideas feature highlights Caterpillar (CAT - Free Report) , Domino's Pizza (DPZ - Free Report) and Cintas (CTAS - Free Report) .

These 3 Stocks Are Decade-Long Outperformers: CTAS, DPZ, CAT

Investors are always looking to beat the market, searching for stocks that deliver consistent long-term gains. And perhaps to the surprise of some, many non-tech stocks have delivered outsized gains over the last decade.

Several factors contribute to long-term outperformance, including consistent sales growth, margin expansion, efficient capital deployment, and innovation.

Three stocks –Caterpillar, Domino's Pizza and Cintas – have all outperformed the S&P 500 over the last decade, all posting at least a 15% annualized return.

Let's take a closer look at each.

Caterpillar Flexes Shareholder-Friendly Nature

Caterpillar, known for its iconic yellow machines, is the largest global construction and mining equipment manufacturer. The earnings estimate revisions trend has remained bullish for its current fiscal year, up 3% over the last year to $21.91 per share.

The stock has long been a favorite among income-focused investors, currently holding the ranks of a Dividend Aristocrat thanks to 25+ years of increased payouts. The company currently sports a 6% five-year annualized dividend growth rate paired with a sustainable payout ratio sitting at 23% of its earnings.

DPZ Keeps Delivering Growth

Domino's is a top player in the Quick-Service Restaurant Pizza category. Consistently strong sales growth has aided the company's shares in a big way.

Growth is expected to continue, with consensus expectations for its current fiscal year suggesting 11% earnings growth on 7% higher sales. Peeking ahead to FY25, consensus expectations suggest an additional 10% of EPS growth paired with a 7% sales climb. The stock sports a Style Score of 'B' for Growth.

The outlook for its current fiscal year has remained positive, with the $16.25 Zacks Consensus EPS estimate up nearly 3% over the last year.

Cintas Enjoys Consistent Margin Expansion

Cintas' products and services include uniforms, floor care, restroom supplies, first aid, and safety products, taking care of any business needs. Like those above, the outlook for its current fiscal year has remained bullish, with the $4.16 per share expected up 5% over the last year and suggesting 10% Y/Y growth.

Margin expansion has helped aid share performance nicely over the last decade, as we can see illustrated below. A shareholder-friendly nature has also kept investors happy, with Cintas sporting a sizable 22% five-year annualized dividend growth rate.

Bottom Line

All investors look to reap outsized gains, precisely what all three stocks above have done over the last decade, providing annualized returns in excess of 15%.

Several factors have contributed to their long-term outperformance, including consistent sales growth, meaningful margin expansion, efficient capital deployment, and innovation.

Why Haven't You Looked at Zacks' Top Stocks?

Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.

Today you can access their live picks without cost or obligation.

See Stocks Free >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Caterpillar Inc. (CAT) - free report >>

Domino's Pizza Inc (DPZ) - free report >>

Cintas Corporation (CTAS) - free report >>

Published in